WISE Fund council split on funding

BATON ROUGE – Harmony among the higher education and economic development panel charged with developing ways to split $40 million aimed at meeting the state's workforce needs hit a bad chord Wednesday when it came time to decide whether immediate or long-term needs are more important to address.

The key is that the decision plays a major role in how the money is split.

Since its introduction to and eventual unanimous approval by the Legislature this year, higher education officials have sung the same tune of cooperation about the WISE (Workforce and Innovation for a Stronger Economy) Fund. It's designed to fill a "gap" between the demand for highly trained workers at all levels and the number of graduates being supplied to fill those jobs.

But at a Wednesday afternoon meeting of the WISE Council, which consists of the heads of Louisiana's two- and four-year college and university systems, the overall Board of Regents and representatives from the departments of economic development and workforce development, the first problems arose.

Members were discussing which jobs would be considered most important and whether a long-term or short-term forecast of job needs would best determine where the money would be invested.

"We can't just front-load short-term and think we're going to load long-term later," said Sandra Woodley, president of the University of Louisiana System. "It takes four years for an engineering degree. We can't ignore all the other pieces."

"I don't hear anyone arguing for short-term," said Tom Layzell, a consultant hired to administer the Board of Regents until a new commissioner of higher education can be hired.

Monty Sullivan, president of the Louisiana Community and Technical College System, which runs the state's two-year campuses, objected.

"There's much more accuracy in the short-term forecast," said Sullivan, whose campuses can deliver specially trained workers to job sites in two years. He pointed out that construction jobs at plants and other industries moving into the state are currently in highest demand and the more skilled jobs, like welding, bring the $60,000-$65,000 salaries that meet the state's 4- and 5-Star ratings.

"We should have the ability to make adjustments," he said. "Right now, there's an acute demand for trained workers and 85 percent of the demand is short-term.

"That doesn't preclude dollars spent on four-year institutions," Sullivan said. "To overlook the needs we have in Louisiana would be a mistake."

The council decided to make that decision at its next meeting.

William "Bubba" Rasberry, president of the Regents, said there wouldn't be a discussion if college and university budgets had not been "stabilized" this year and campuses were not able to retain tuition increases.

"We've got a happy crisis," he said.

The panel agreed that each system should get at least $2 million and then compete for the other dollars based on their ability to produce workers to meet industry needs.

Ronald Mason, president of the Southern University System, said he considers that a fair base.

"There's enough gap to go around," he said. "We all want to be players in this game."

Mason questioned whether the council would use "a snapshot or a moving picture" of job needs. "This is not going to be enough money to fill the gap, anyway."

Woodley cautioned that not all decisions can be based on calculations because some can be wrong.

She pointed to one facet of a report showing "we're overproducing nurses but we find we can't produce them fast enough."

LSU System President and Baton Rouge campus Chancellor King Alexander said that while it's important to supply engineers and other high-demand employees, he is being questioned by CEOs about supplying high-quality teachers for their children and to give high school students the base they need to be successful in college.

He said a study on his campus shows the need to hire 14 engineering professors to meet the expected demand, so that will be a use of WISE funding.

Layzell said other states are watching to see how WISE works. "We've got a chance to do something nobody else is doing, so let's not screw it up."